Mankato Area Public Schools teacher insurance rates will jump almost 17 percent next year, marking the largest increase since 2000-01.

The move will take a toll on staff paychecks. A teacher on a basic family health plan will jump from $1,160 per month to $1,359 next year. A single person on a basic health plan will jump from $432 per month to $505.

A big reason for the hike was a high number of claims taken in Mankato schools last year, said Jerry Kolander, the district’s business director.

“This is unfortunate,” he said. “It’s all coming out of employee pockets.”

There’s not much teachers can do about it, and the high jump could have an impact on teacher contract negotiations coming up next year, said Robin Courrier, Mankato teachers’ association president and negotiator.

More money will be allocated into insurance instead of salary increases, she said.

“It makes it harder to negotiate as we go into the year,” Courrier said. “Insurance is something all of us need.”

Courrier said she’s advised teachers to look at different plans with higher deductibles to lessen the financial burden.

The insurance hike also may spark a debate about a voluntary employee benefit association, which helps employees establish a trust fund to cover health insurance costs.

Last year insurance rates only went up about 3 percent, and the last major jump was in 2000-01 at 19.2 percent. That’s when the district began offering multiple insurance packages with higher deductible rates. The move follows an industry trend that shifts health-care responsibility toward employees.

Many businesses are seeing 9 to 10 percent increases this year, Kolander said.

“Insurance companies are in the business to make money,” he said. “They need to cover their losses.”